What is the beta of your portfolio

Assignment Help Financial Management
Reference no: EM13939604

You have $116,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17.8 percent. Stock X has an expected return of 13.4 percent and a beta of 1.30, and Stock Y has an expected return of 7.9 percent and a beta of .80.

How much money will you invest in stock Y?

What is the beta of your portfolio?

Reference no: EM13939604

Questions Cloud

Part of new capital budgeting project : The value of currently unused warehouse space that will be used as part of a new capital budgeting project is:
Consider a zero coupon bond : Consider a zero coupon bond (one with zero interest payments). If the bond has a maturity value in seven years of $1000 and you would currently pay $850 for the bond, what is the yield to maturity?
Identify a central arteriole, the surrounding pals : Try to identify a central arteriole, the surrounding PALS, and follicle in the spleen. In your post assignment entry, describe in your own words how these 2-D images relate to 3-D structure.
Organisational structure does not influence on communication : Write an argumentative essay on one of the topics below: Organisational structure does not influence effective communication in an organisation.
What is the beta of your portfolio : You have $116,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17.8 percent. Stock X has an expected return of 13.4 percent and a beta of 1.30, and Stock Y has an expected ..
Accrued basis net income : Compute the 2010 cash-basis net income (show calculations) Compute the 2010 accrued-basis net income (show calculations)
What is the value today of a security that promises to pay : What is the value today of a security that promises to pay $1,000 in one quarter, with payments increasing at 1% per quarter thereafter? Payments are made each quarter forever. Our opportunity cost of capital is 12% per annum.
Student suffering financial hardship : A written statement of approximately 200 words outlining what new opportunities a bursary will assist a student suffering financial hardship, to continue their studies.
Describe the main points of the drug-control program : Write a report that summarizes the information that the document provides about each major drug category. Briefly describe the main points of the drug-control program that the document outlines. Be sure to address the following questions: What t..

Reviews

Write a Review

Financial Management Questions & Answers

  Convertible bond-calculate your gain or loss

You own a convertible bond that has a 6% yield, 4.5% coupon rate, pays semiannually, and has 3 years to maturity. The conversion rate is 8. The current stock price is 127.3. Calculate your gain or loss if you decide to convert.

  Minimum amount couple needs to establish emergency fund

Jane and Bill Collins have total take-home pay of $3,900 a month. Their monthly expenses total $2,800. Calculate the minimum amount this couple needs to establish an emergency fund.

  Bonds price changes as interest rates change

If two bonds have the same duration, the change in their price when interest rates change will be the same. For non-callable bonds, duration provides only a linear approximation of a bond's price changes as interest rates change.

  The constant dividend growth model

The constant dividend growth model is:

  Calculate the price per share required in a new public issue

Earnings have been running at about the same level as dividends - Calculate the price per share required in a new public issue

  Retirement in order to be able to fund your retirement

At your age (assume 20) you can assume that you will live to be 100. If you graduate at 23 and start to work, you can expect to work for 47 years, until age 70. Ignoring inflation in all calculations, how much will you need to have saved at retiremen..

  What is the companys cost of equity capital

The Graber Corporation’s common stock has a beta of 1.2. If the risk-free rate is 4.3 percent and the expected return on the market is 13 percent, what is the company’s cost of equity capital?

  What is the present value of the lease payments

Your landscaping company can lease a truck for $7,200 a year for 6 years. It can instead buy the truck for $35,000. The truck will be valueless after 6 years. What is the present value of the lease payments, if the opportunity cost of capital is 7%?

  Find the weighted average cost of capital for a firm

Find the weighted average cost of capital for a firm whose tax rate is 35%. Debt: 8,500 7.2% coupon bonds outstanding, $1000 par value, 25 years to maturity, selling for 118% pf par; the bonds make semi-annual payments.

  1 identify the key criteria and considerations that need to

1. identify the key criteria and considerations that need to be taken into account in evaluating bfsi entry in the

  Critically evaluate the role and function of finance

Critically evaluate the role and function of finance, including the presentation and analysis of financial information, in sustaining and contributing towards the competitive advantage of organisations...

  What is the after-tax cash flow from operations

A retail property was purchased for $1,000,000. An appraiser valued the land portion at $100,000 and the building portion at $900,000. Assume straight-line depreciation over 39 years. The investor secured a $700,000 loan at 7% interest for ten years ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd